BILL NUMBER: SB 1225	CHAPTERED  07/16/01

	CHAPTER  61
	FILED WITH SECRETARY OF STATE  JULY 16, 2001
	APPROVED BY GOVERNOR  JULY 13, 2001
	PASSED THE ASSEMBLY  JULY 2, 2002
	PASSED THE SENATE  MAY 29, 2001

INTRODUCED BY   Committee on Banking, Commerce and International
Trade (Senators Machado (Chair), Costa, Johnson, Karnette, Monteith,
Polanco, and Scott)

                        MARCH 29, 2001

   An act to amend Section 1411 of the Financial Code, relating to
banks.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1225, Committee on Banking, Commerce and International Trade.
  Industrial banks.
   Existing law, the Banking Law, permits an industrial bank to
engage in all the activities of a commercial bank.  Existing law
prohibits an industrial bank from accepting demand deposits but
authorizes an industrial bank to accept deposits evidenced by
investment or thrift certificates.
   This bill would authorize an industrial bank to accept deposits
evidenced by deposit accounts or certificates instead of by
investment or thrift certificates.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1411 of the Financial Code is amended to read:

   1411.  Subject to any order or regulation of the commissioner, an
industrial bank may accept deposits evidenced by a deposit account or
by certificates, that are redeemable prior to their stated maturity,
but may not accept demand deposits.